S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1729
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2025
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Housing
 
 AN ACT to amend the private housing finance law, in relation to creating
   an affordable housing  relief  fund  program  to  preserve  affordable
   multifamily residential properties located in New York state

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The private housing finance law is amended by adding a  new
 article 33 to read as follows:
                               ARTICLE XXXIII
                  AFFORDABLE HOUSING RELIEF FUND PROGRAM
 SECTION 1300. STATEMENT OF LEGISLATIVE FINDINGS.
         1301. DEFINITIONS.
         1302. AFFORDABLE HOUSING RELIEF FUND PROGRAM.
         1303. PROGRAM CRITERIA.
         1304. FUNDING CRITERIA.
         1305. AFFORDABILITY PROTECTION.
         1306. FUNDING.
         1307. ANNUAL REPORT.
   § 1300. STATEMENT  OF  LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS AND
 DECLARES THAT THERE EXISTS A SERIOUS  SHORTAGE  OF  SAFE  AND  HABITABLE
 AFFORDABLE  HOUSING  IN  NEW  YORK STATE FOR PERSONS AND FAMILIES OF LOW
 INCOME. A PORTION OF THE AFFORDABLE, MULTIFAMILY  HOUSING  STOCK  IS  IN
 OPERATIONAL AND FINANCIAL DISTRESS, THREATENING TO EXACERBATE THIS SHOR-
 TAGE. RENT COLLECTION LOSSES, RISING INTEREST RATES AND INSURANCE COSTS,
 AND  OTHER  FACTORS  HAVE  CAUSED  SIGNIFICANT  INCREASES  IN  OPERATING
 EXPENSES, WHICH MAY JEOPARDIZE THE AVAILABILITY TO TENANTS OF AFFORDABLE
 HOUSING UNITS OR EVEN THE VIABILITY OF SOME BUILDINGS. EXISTING  PRESER-
 VATION  PROGRAM  FUNDING  IS  LIMITED, AND DISTRESSED AFFORDABLE HOUSING
 PROPERTIES MAY NOT BE ELIGIBLE FOR SUCH FUNDING. THE LEGISLATURE  THERE-
 FORE  FINDS THAT A PROGRAM SHOULD BE ESTABLISHED TO PROVIDE NEEDED CAPI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04257-01-5
              

 A. 1729                             2
 
 TAL FUNDS AND DEBT RESTRUCTURING TO ENSURE THESE  DISTRESSED  AFFORDABLE
 HOUSING PROPERTIES REMAIN AVAILABLE TO TENANTS.
   § 1301. DEFINITIONS.  FOR  THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "CORPORATION" SHALL MEAN THE HOUSING TRUST FUND CORPORATION  ESTAB-
 LISHED IN SECTION FORTY-FIVE-A OF THIS CHAPTER.
   2. "AFFORDABLE  HOUSING  RELIEF  FUND  PROGRAM"  SHALL MEAN FORGIVABLE
 LOANS AVAILABLE TO SUPPORT THE  RECAPITALIZATION  AND  STABILIZATION  OF
 QUALIFIED  PROPERTIES AND TO ASSIST DEVELOPMENTS THAT ARE OUTSIDE OF THE
 ALLOWABLE REFINANCING TERM.
   3. "ELIGIBLE  PROJECTS"  SHALL  MEAN  EXISTING  AT-RISK,  ONE  HUNDRED
 PERCENT  AFFORDABLE  OR SUPPORTIVE MULTIFAMILY RENTAL PROPERTIES SUBJECT
 TO A REGULATORY AGREEMENT WITH ONE OR MORE MUNICIPAL, STATE, OR  FEDERAL
 HOUSING AGENCIES.
   4. "ELIGIBLE  USES"  SHALL INCLUDE BUT NOT BE LIMITED TO THE PRESERVA-
 TION AND IMPROVEMENT  OF  ELIGIBLE  PROJECTS,  AS  ESTABLISHED  BY  THIS
 SECTION,  TO  ADDRESS  DEFERRED  MAINTENANCE,  CAPITAL  NEEDS, EMERGENCY
 REPAIRS, OR ANY CONDITION WHICH POSES A  THREAT  TO  THE  LIFE,  HEALTH,
 SAFETY,  OR  HABITATION  OF  RESIDENTS, TO INCLUDE DEBT RESTRUCTURING TO
 STABILIZE AND PRESERVE  THE  HOUSING  SUPPLY  AND  REDUCE  THE  RISK  OF
 DEFAULT.
   5. "ELIGIBLE  APPLICANT"  SHALL  INCLUDE  NOT-FOR-PROFIT OR CHARITABLE
 ORGANIZATIONS, OR A WHOLLY OWNED SUBSIDIARY OF  SUCH  ORGANIZATIONS,  OR
 PRIVATE FOR-PROFIT PROPERTY OWNERS THAT HAVE A REGULATORY AGREEMENT WITH
 ONE  OR MORE MUNICIPAL, STATE, OR FEDERAL HOUSING AGENCIES APPLICABLE TO
 ONE HUNDRED PERCENT OF THE HOUSING UNITS ON THE PROPERTY.  THE  SPONSOR,
 MANAGEMENT COMPANY AND PRINCIPAL PARTICIPANTS IN THE PROJECT SHALL BE IN
 GOOD  STANDING, NOT IN DEFAULT UNDER ANY EXISTING MORTGAGE FINANCING AND
 SHALL MEET ALL CREDIT REVIEW CRITERIA IMPOSED BY THE CORPORATION.
   § 1302. AFFORDABLE HOUSING RELIEF FUND PROGRAM. WITHIN AMOUNTS  APPRO-
 PRIATED  OR  OTHERWISE AVAILABLE THEREFOR, THE HOUSING TRUST FUND CORPO-
 RATION SHALL DEVELOP AND ADMINISTER AN AFFORDABLE  HOUSING  RELIEF  FUND
 PROGRAM  WHICH  SHALL PROVIDE AID IN THE FORM OF PAYMENTS AND GRANTS FOR
 REASONABLE AND NECESSARY EXPENSES TO ELIGIBLE APPLICANTS FOR THE PRESER-
 VATION OR IMPROVEMENT OF AFFORDABLE HOUSING PROPERTIES.
   § 1303. PROGRAM CRITERIA. THE CORPORATION  SHALL  DEVELOP  PROCEDURES,
 CRITERIA AND REQUIREMENTS RELATED TO THE COMPETITIVE APPLICATION FOR AND
 AWARD OF AID PURSUANT TO THIS SECTION WHICH SHALL INCLUDE:  ELIGIBILITY,
 MARKET  DEMAND,  FEASIBILITY  AND FUNDING CRITERIA; THE FUNDING DETERMI-
 NATION PROCESS; SUPERVISION AND EVALUATION  OF  CONTRACTING  APPLICANTS;
 REPORTING,  BUDGETING  AND  RECORD-KEEPING  REQUIREMENTS; PROVISIONS FOR
 MODIFICATION AND TERMINATION OF CONTRACTS; AND SUCH  OTHER  MATTERS  NOT
 INCONSISTENT  WITH  THE  PURPOSES  AND PROVISIONS OF THIS ARTICLE AS THE
 CORPORATION SHALL DEEM NECESSARY OR  APPROPRIATE.  THE  CORPORATION  MAY
 PRIORITIZE PROPERTIES IN THE GREATEST DISTRESS.
   § 1304. FUNDING CRITERIA. UP TO FIFTY THOUSAND DOLLARS PER INCOME-RES-
 TRICTED  HOUSING  UNIT MAY BE AWARDED FOR RESIDENTIAL AFFORDABLE HOUSING
 PRESERVATION OR REHABILITATION. ASSISTANCE SHALL BE IN  THE  FORM  OF  A
 ZERO PERCENT INTEREST RATE LOAN, WITH NO MONTHLY PAYMENTS, THAT SHALL BE
 FORGIVEN  AFTER  TEN  YEARS.  ALL  OR  A PORTION OF PROGRAM FUNDS MAY BE
 REQUIRED TO BE REPAID IF THE PROJECT IS SOLD WITHIN TEN YEARS  OR  FAILS
 TO  COMPLY WITH THE REGULATORY AGREEMENT. THE AMOUNT SUBJECT TO POSSIBLE
 REPAYMENT SHALL DECREASE BY 1/120 PER  MONTH  EACH  MONTH  THE  PROPERTY
 REMAINS IN COMPLIANCE WITH AFFORDABILITY TERMS.
   § 1305. AFFORDABILITY  PROTECTION.  RECIPIENTS  OF ASSISTANCE SHALL BE
 SUBJECT TO  AFFORDABILITY  RESTRICTIONS,  TENANT  PROTECTIONS,  AND  ALL
 A. 1729                             3
 
 EXISTING PROVISIONS OF ANY REGULATORY AGREEMENT WITH ONE OR MORE MUNICI-
 PALITY,  STATE,  OR  FEDERAL  HOUSING  AGENCY THAT SERVES AS A BASIS FOR
 ELIGIBILITY FOR ASSISTANCE UNDER THIS PROGRAM.
   § 1306. FUNDING.  SUBJECT  TO  APPROPRIATIONS  FOR  THIS  PROGRAM, THE
 CORPORATION IN ITS SOLE DISCRETION SHALL AUTHORIZE ALL FUNDING DECISIONS
 AND MAKE ALL AWARD DETERMINATIONS.
   § 1307. ANNUAL REPORT. THE CORPORATION SHALL,  ON  OR  BEFORE  JANUARY
 THIRTY-FIRST  IN  EACH  YEAR  SUBMIT  A REPORT TO THE LEGISLATURE ON THE
 IMPLEMENTATION OF THIS ARTICLE. SUCH REPORT SHALL INCLUDE,  BUT  NOT  BE
 LIMITED  TO,  THE  NUMBER  OF  APPLICATIONS  RECEIVED  BY THE END OF THE
 PRECEDING CALENDAR YEAR, THE TOTAL DOLLAR AMOUNT OF  SUCH  APPLICATIONS,
 AND  THE  DISPOSITION OF SUCH APPLICATIONS; AND FOR EACH AWARD MADE TO A
 GRANTEE UNDER THIS ARTICLE, A DESCRIPTION OF SUCH  AWARD,  THE  CONTRACT
 AMOUNT  AND  CUMULATIVE TOTAL, THE SPECIFIC ACTIVITIES PERFORMED BY SUCH
 GRANTEE, THE AMOUNTS OF MONIES RECEIVED  BY  THE  GRANTEE  FROM  SOURCES
 OTHER THAN PAYMENTS MADE PURSUANT TO THIS ARTICLE, AND SUCH OTHER INFOR-
 MATION AS THE CORPORATION DEEMS PERTINENT.
   § 2. This act shall take effect immediately.